Promoting more women in the workplace isn’t just equitable, it’s profitable. Researchers have found that Fortune 500 companies that aggressively promote women to high levels consistently outperform their industry peers, Roy Douglas Adler writes for Miller-McCune. Adler and his colleagues at Pepperdine University used data from a study on the glass ceiling and found that the companies best at promoting women outperformed the industry median on various measures of profitability.
Adler stresses that the correlation between hiring women and profitability doesn’t show a causation, but he does come up with a possible explanation:
Firms exhibit higher profitability when their top executives make smart decisions. One of the smart decisions those executives have consistently made at successful Fortune 500 firms is to include women in the executive suite—so that regardless of gender, the best brains are available to continue making smart, and profitable, decisions.